Islamabad – Pakistan’s Auditor General has uncovered financial irregularities amounting to more than PKR 210 million in the national airline, citing the prolonged retention of staff at an inactive station in the United Kingdom.
According to the audit report, 35 employees remained posted at the airline’s London station for five years despite a complete suspension of flights and operational activities from the location. The report highlights that this mismanagement cost the national exchequer over PKR 210 million in salaries alone during the period.
The auditors stressed that since 2019, no flights or ground operations had taken place from the London station, yet the management continued to maintain the full workforce. The issue was formally flagged to the airline’s administration in September 2024, but despite repeated reminders, the management neither provided a response nor convened a Departmental Accounts Committee (DAC) meeting to address the matter.
The report further noted that the responsibility for such decisions ultimately rests with the airline’s board, which is bound under the 2013 corporate governance rules to act in the company’s best interest. By ignoring repeated warnings and delaying corrective measures, the management allowed significant financial losses to continue unchecked.
Auditors have now called for immediate investigations to determine accountability and identify those responsible for the irregularities. The report underscores that the persistence of such practices undermines not only financial discipline but also public confidence in the state-owned carrier, already struggling with long-standing governance and operational challenges.
Despite efforts to seek clarification, the spokesperson for Pakistan International Airlines (PIA) did not respond to queries regarding the audit findings.
The revelations add to the mounting scrutiny on PIA, which has faced bans on international routes and severe financial constraints in recent years, raising questions about oversight, transparency, and the urgent need for reforms in Pakistan’s aviation sector.
